• TJX Companies (TJX) is a prominent player in the retail sector, showcasing strong financial health and growth potential.
• TJX offers a robust business model, consistent revenue growth, and resilience in economic downturns.
• Strategic expansion and a solid balance sheet give TJX a promising outlook. 

Today’s Featured Stock:

Valued at $147 billion, TJX Companies (TJX), is a leading off-price retailer of apparel and home fashion goods in the U.S. and worldwide. It has 50% market share.  

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “Buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. TJX checks those boxes. Since the Trend Seeker signaled a buy on April 2, the stock has gained 5.25%.

On the chart, you can note that the stock is trading above all of its daily moving averages and has rising prices on steady volume.

TJX Price vs. Daily Moving Averages:

Barchart Technical Indicators for TJX:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

When a stock is trading above all of its daily moving averages and is only 0.04% from its 52-week high, it won’t take much to hit another new high.

• TJX has a 100% technical “Buy” signal.
• The stock closed at $131.49 on May 12 above its 50-week moving average of $123.10.
• TJX has a Weighted Alpha of +29.19.
• The stock has gained 32.9% over the past year.
• Trend Seeker “Buy” signal intact.
• TJX is trading above its 20, 50 and 100-day moving averages.
• The stock has made 3 new highs and is up 2.44% in the last month.
• The 14-day Relative Strength Index is at 64.74%.
• The technical support level is at $127.25.

Follow the Fundamentals:

• $147 billion market cap.
• 30.07x price-earnings ratio. 
• 1.29% dividend yield.
• Revenue is expected to grow 4.53% this year and another 5.64% next year.
• Earnings are estimated to increase 8.01% this year and an additional 13.77% next year.

Analyst and Investor Sentiment on TJX:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like not only Wall Street analysts, but also many of the popular investing advisory services, have mixed feelings on this stock.

• Wall Street analysts tracked by Barchart issued 20 “Strong Buy” and 2 “Hold” opinions on the stock with an average price target of $140.
• Value Line gives the stock an above average rating with a price target of $134 and comments: “We like TJX Companies’ prospects for its potential to do well in multiple economic scenarios. These good-quality shares could fit in nicely with a conservative portfolio.”
• CFRA’s MarketScope gives the stock a “Sell” rating with a price target of $102 but comments: “Our Sell opinion and target price reflect our view that TJX is well positioned to benefit from a more frugal U.S. consumer in 2024, more than offset by extreme valuation and a slowdown in consumer spending. TJX enjoys the ability to quickly pivot into emerging trends with its unique purchasing model.”
• MorningStar thinks the stock is 48% overvalued yet comments: “Despite holding around 50% market share in the off-price apparel industry, TJX plans to further expand the footprint of its T.J. Maxx and Marshalls banners — we surmise the company has room to grow its 2,500 combined locations to around 3,000 over the next decade. That said, we expect apparel manufacturers to manage excess inventory levels more stringently in the future.”
• Of the 2,105 individual investors following the stock on Motley Fool, 1,853 think the stock will beat the market and 102 think it won’t.
• 56,060 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line:

Currently TJX Companies has momentum and support from both the market and individual investors, and seems to be beating out its competition from rivals Ross Stores and Burlington Stores.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.